Meeting today’s digital-first consumers where they are
The pandemic has created a new digital-first consumer across all generations. Consumer expectations for convenient experiences are higher than ever and consumer behaviors have shifted dramatically. In fact, according to a McKinsey & Company study, online purchasing has grown in the double digits across a broad range of categories, including over-the-counter medications, groceries, and household items. Similarly, another McKinsey study found that convenience is one of the main factors that consumers consider when choosing where to shop. So, it shouldn’t come as a shock that many brands across a variety of industries are looking for ways to attract and retain customers.
With embedded finance, you can provide banking and payment services that help attract new customers, deepen relationships, and encourage customers to spend with you. At its core, embedded finance is about integrating frictionless, digital payments, and financial experiences right into your business’ branded environments, giving customers a seamless and more feature-rich brand experience than ever before. Businesses that are already embracing this shift are reaping the benefits of increased customer loyalty, incremental revenue, and market share.
The embedded finance movement and opportunity
The opportunities for embedded finance are virtually endless. Most of us have engaged with some form of embedded finance whether we realize it or not. Embedded finance (also known as BaaS: Banking as a Service, IaaS: Insurance as a Service, and PaaS: Payments as a Service) solutions are essentially financial tools or services – such as banking, payment processing, insurance, or lending options – often provided directly to a buyer at the point of service by a financial provider through a non- financial company. Embedded finance technology is behind most digital wallets, wealth management tools, digital banking services, embedded payments, buy now, pay later lines of credit and more. There are many brands, products, and services that could benefit from an embedded finance solution to make their customers’ lives more convenient.